ARE YOU HST READY?
THE BACKGROUND…
The provinces of Ontario and British Columbia have agreed to implement the harmonized sales tax (HST), which would replace existing provincial sales taxes and the federal goods and services tax in those provinces beginning July 1, 2010 and would be administered by the Canada Revenue Agency. Legislation to enact the HST has been passed into law by the Governments of Canada and Ontario. Similar legislation is expected to be introduced soon in the province of British Columbia and, subject to legislative approval, would also provide for the implementation of HST in British Columbia beginning July 1, 2010.
WHAT TO EXPECT…
Legislation to enact the harmonized sales tax (HST) has been passed by the Government of Canada and is expected to be introduced soon in the province of British Columbia. The HST would be applied on most supplies of goods and services made in British Columbia at a rate of 12%, consisting of the 5% federal portion and a 7% provincial portion.
Businesses in British Columbia that are registered for the GST would be required to collect the HST and would report their HST according to their current GST filing frequency. Retailers and service-providers should begin to upgrade their point-of-sale, cost and accounting systems as early as possible to ensure that they meet the implementation date of July 1, 2010.
ARE YOU READY?…LEARN MORE.
For additional information on British Columbia’s sales tax reform, visit the Government of British Columbia web site and visit this site New GST/HST Reporting Requirements.
- NOTICE246 Harmonized Sales Tax for British Columbia – Questions and Answers on Housing Rebates and Transitional Rules for Housing and Other Real Property Situated in British Columbia
- NOTICE247 Harmonized Sales Tax for Ontario and British Columbia – Questions and Answers on General Transitional Rules for Personal Property and Services
- NOTICE249 Questions and Answers on the New Reporting Requirements for GST/HST Registrants
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